Slide 1: First Quarter 2023 Earnings Review
First Quarter 2023 Earnings Review May 2, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that
Slide 3: Q1 2023 Update
Q1 2023 Update Eric Vaillancourt President & Chief Executive Officer
Slide 4: First Quarter 2023 Highlights
First Quarter 2023 Highlights Outstanding Execution Consistent Quarterly Results Strategic Focus Strong organic revenue growth 6.3% driven by strength across Sealing Remain focused on leading- Technologies and pricing initiatives edge critical products and in response to inflationary pressures solut
Slide 5: Overview of Financial Results
Overview of Financial Results Milt Childress Executive Vice President & Chief Financial Officer
Slide 6: Q1 2023 Financial Performance
Q1 2023 Financial Performance $ in millions, except per share data Sales Gross Profit & Margin Adjusted EBITDA* & Margin* Adjusted Diluted EPS* +4.6% 600 bps +16.3% +25.0% • Strong demand in the aerospace, • Q1 2022 gross margin was impacted by • Adjusted EBITDA* of $68.6 million • Adjusted diluted
Slide 7: Sealing Technologies – Q1 2023 Performance
Sealing Technologies – Q1 2023 Performance $ in millions Sales Adjusted EBITDA & Margin +12.8% +44.9% • Sales increase driven by strong demand in the aerospace, • Adjusted segment EBITDA of $49.7 million increased 44.9% over general industrial, nuclear, and commercial vehicle markets, the prior year
Slide 8: Advanced Surface Technologies – Q1 2023 Performance
Advanced Surface Technologies – Q1 2023 Performance $ in millions Sales Adjusted EBITDA & Margin -6.3% -15.5% • Sales decrease driven primarily by a near-term slowdown in • Adjusted segment EBITDA decrease driven primarily by the semiconductor capital equipment spending decline in sales, which affec
Slide 9: Balance Sheet, Cash Flow & Capital Allocation
Balance Sheet, Cash Flow & Capital Allocation $ in millions Net Leverage Commentary Reported March 31, 2023 • Strong balance sheet; ample liquidity consisting of Revolving Credit Facility $ — $336.1M in cash, $35.0M in highly liquid short-term investments and $389.2M4 available under revolving Term
Slide 10: 2023 Guidance
2023 Guidance 2023 Guidance* Assumptions (as of 2/21/23 – maintained as of 5/2/23) Flat – Low Single ~$100M Revenue Growth Digit Growth Depreciation and Amortization ~$35-40M Adjusted EBITDA** $248M – $260M Net Interest Expense 25% $6.45 – $7.05 Normalized Tax Rate Adjusted Diluted EPS** (from 27% l
Slide 11: Closing Comments
Closing Comments Eric Vaillancourt President & Chief Executive Officer
Slide 12: At Enpro, we empower technology, with purpose
At Enpro, we empower technology, with purpose. Our customers rely on us to elevate their applications and accelerate their competitive edge through a suite of advanced technologies and critical solutions to meet their most challenging needs. By leveraging decades of experience and deep technical exp
Slide 13: <{ G ©
<{ 03 G ©
Slide 14: Appendix
Appendix ©
Slide 15: Attractive Portfolio of Leading-Edge Businesses
Enpro (NYSE: NPO) | Attractive Portfolio of Leading-Edge Businesses Q1 2023 Revenue Contribution Sales by Segment Sales by Channel Sales by Geography Sales by Market 13 Headquarters Principal Global Charlotte, Manufacturing 47% Employees NC and Service 53% ~3,500 Facilities Financial Overview Market
Slide 16: Reconciliation of LTM Results
Reconciliation of LTM Results EnPro Industries, Inc. Adjusted Adjusted ($ in millions) Revenue EBITDA EBITDA Margin Three Months Ended March 31, 2023 $ 282.6 $ 68.6 24.3% Plus: Year Ended December 31, 2022 1,099.2 257.4 23.4% Less: Three Months Ended March 31, 2022 270.1 59.0 21.8% LTM Ended March 3
Slide 17: Consolidated Adjusted EBITDA (1/2)
Consolidated Adjusted EBITDA (1/2) For the Quarters and Year Ended December 31, 2022 (In Millions) Year Ended December 31, 2022 Income (loss) from continuing operations attributable to EnPro Industries, Inc. $ 6.7 Net income (loss) attributable to redeemable non-controlling interests (2.8) Income (l
Slide 18: Consolidated Adjusted EBITDA (2/2)
Consolidated Adjusted EBITDA (2/2) For the Three Months Ended March 31, 2023 and 2022 (In Millions) Three Months Ended March 31, 2023 2022 Net income from continuing operations attributable to EnPro Industries, Inc., net of tax $ 26.0 $ 11.9 Net income attributable to redeemable non-controlling inte
Slide 19: Segment Information (1/2)
Segment Information (1/2) For the Three Months Ended March 31, 2023 and 2022 Reconciliation of Adjusted Segment EBITDA to Income (Loss) from Continuing Operations Attributable to (In Millions) EnPro Industries, Inc. 2023 2022 Sales Income (loss) from continuing operations attributable to EnPro Indus
Slide 20: Segment Information (2/2)
Segment Information (2/2) For the Three Months Ended March 31, 2023 and 2022 (In Millions) Three Months Ended March 31, 2022 Three Months Ended March 31, 2023 Advanced Sealing Surface Total Advanced Technologies Technologies Segments Sealing Surface Total Acquisition and divestiture expenses $ — $ 0
Slide 21: Consolidated Adjusted Net Income
Consolidated Adjusted Net Income (In Millions, Except Per Share Data) Three Months Ended March 31, 2023 2022 Average Average common common shares shared outstanding, Per outstanding, Per $ diluted Share $ diluted Share Income from continuing operations attributable to EnPro Industries, Inc., net of
Slide 22: Free Cash Flow
Free Cash Flow (In Millions) Free Cash Flow - Three Months Ended March 31, 2023 Net cash provided by operating activities of continuing operations $ 26.4 Purchases of property, plant, and equipment (5.0) Free cash flow $ 21.4 Free Cash Flow - Three Months Ended March 31, 2022 Net cash provided by op